Developing the Product Planning-Related Business into a Second Core Business

「In the product planning-related business, we worked to improve production management efficiency at our factories and promoted sales activities using acquired patents with a view to expanding into the functional-fiber apparel business.」

「In the product planning-related business, revenue increased year on year, mainly because orders and deliveries at Qingdao Xintanfan Trading Co., Ltd. and Genepa Vietnam Co., Ltd. remained strong.」

「In the product planning-related business, revenue was ¥1,406 million, up 11.9% year on year, and segment profit was ¥77 million, up 129.7%, due mainly to strong orders and deliveries at Qingdao Xintanfan Trading Co., Ltd. and Genepa Vietnam Co., Ltd.」

「Meanwhile, operating profit declined year on year because deliveries became concentrated at Genepa Vietnam Co., Ltd., our Vietnamese subsidiary, and the company strategically accepted a large number of small-lot orders to expand its customer base. This temporarily reduced efficiency and profit margins, leaving profit below the expected level.」

「In the product planning-related business, restrictions on social and economic activity imposed from 2020 to prevent the spread of COVID-19 were largely lifted, enabling more active on-site support through overseas business trips and stronger sales activities. However, revenue declined year on year because deliveries for orders were pushed into the following fiscal year and orders from existing customers remained weak. Profit also remained below the previous year's level as the decline in revenue made it difficult to secure profit.」

「In the product planning-related business, factory utilization rates in China and Vietnam improved. However, revenue declined because the business was unable to receive orders in the current period for spring and summer products ordered by customers in the same period of the previous year. Consolidated group revenue nevertheless remained above the level of the same period of the previous year.」

「In the product planning-related business, revenue and profit increased year on year as overseas business trips resumed, enabling the restart of on-site support and stronger sales activities, the production system was developed further and factory utilization rates improved, and orders at Qingdao Xintanfan Trading Co., Ltd., our Chinese subsidiary, remained strong. As a result, revenue was ¥502 million, up 1.8% year on year, and segment profit was ¥39 million, compared with segment profit of ¥2 million in the same period of the previous year.」

「In the product planning-related business, various COVID-19-related restrictions in Vietnam have been eased. In addition, factory utilization rates improved as the production system was developed further, while orders at Qingdao Xintanfan Trading Co., Ltd., our Chinese subsidiary, remained strong. As a result, both revenue and profit increased significantly year on year.」

「In the product planning-related business, Genepa Vietnam, our partner factories and suppliers had continued to face difficulty securing production personnel due to the impact of COVID-19 in Vietnam. During the second quarter, however, production staffing gradually improved and factory utilization rates began to rise. In addition, orders received by Qingdao Xintanfan Trading Co., Ltd., our Chinese subsidiary, grew steadily, resulting in significant year-on-year increases in both revenue and profit.」

「No factory operating restrictions or similar measures are currently in place, and utilization rates have improved from the previous year. As a result, both revenue and profit increased year on year.」

「In the product planning-related business, factory closures and significant operating restrictions continued due to the impact of COVID-19. As productivity declined substantially at Genepa Vietnam Co., Ltd., our partner factories and suppliers, overall revenue declined significantly.」

「In the product planning-related business, overall revenue declined because delivery schedules for furniture and bedding, the products handled by our main sales channel, were adjusted due to the impact of COVID-19. On the earnings side, profit remained below the level of the same period of the previous year, mainly due to higher costs resulting from the worldwide rise in raw material and logistics costs, in addition to the aforementioned decline in revenue, and the inability to provide direct support to 新綻紡社 and Genepa Vietnam due to prolonged travel restrictions.」

「In the product planning business, all locations, including the domestic operations, the Company's subsidiary Genepa Vietnam Co., Ltd. (Genepa Vietnam), and the Company's subsidiary Qingdao Xinzhanfang Trading Co., Ltd. (Xinzhanfang), were affected by COVID-19 and the second state of emergency declaration. As a result, delivery schedules were generally pushed back, causing revenue to decline year on year. In terms of profitability, the main factors at Genepa Vietnam were the impact of delayed deliveries, investment costs for establishing production lines and training personnel, and higher logistics costs, resulting in the business as a whole falling below the level of the same period of the previous year.」

「In the product planning business, the Group will use the big data accumulated through the EC Marketing Business to accelerate product proposals and the development of new customers, plan to build new factories in Vietnam and elsewhere during the current fiscal year, and work to expand revenue and profits.」

「In the product planning business, deliveries were concentrated in the second half due to the impact of COVID-19, while increased orders resulting from Xinzhanfang's acquisition of new customers also contributed, resulting in revenue increasing sharply by 36.5% year on year. In terms of profitability, strong sales made a substantial contribution to profits, offsetting business investment costs aimed at the future, including the cost of establishing a new subsidiary in Vietnam and investments in new product development and the development of new customers. As a result, the product planning business as a whole recovered to and remained at a level above that of the same period of the previous year.」

「Genepa Vietnam commenced factory operations during the second-quarter consolidated accounting period. It is expected to establish a structure for expanding production and contribute to revenue and profits from the following quarter onward.」

「Genepa Vietnam completed its establishment at the end of October 2019, and factory operations began in January 2020. It is expected to establish the necessary structure to expand production and contribute to revenue and profits going forward.」

「In October 2019, Genepa Vietnam Co., Ltd. was established in Vietnam as an overseas base capable of importing raw materials, exporting products, and planning, manufacturing, assembling, and inspecting wood products.」

「In the product planning business, Qingdao Xinzhanfang Trading Co., Ltd., which was added to the scope of consolidation from the third-quarter consolidated accounting period of the previous fiscal year, has moved from the launch phase to the harvesting phase, and revenue is trending sharply higher, at 67.4% year on year.」

「In the product planning business, the company is making upfront investments, including developing new production facilities in line with the growth in the number of business partners, and has accelerated future-oriented business investment in new product development and the development of new customers.」

「In the product planning business, the company is making upfront investments, including the development of new factories, to increase production capacity in line with the growth in the number of business partners, while continuing to invest in the business with a view to the future, including new product development and the development of new customers.」

「In the product planning business, the Group will use the big data accumulated through the EC Marketing Business to accelerate product proposals and the development of new customers, plan to build new factories in Vietnam and elsewhere during the current fiscal year, and work to expand revenue and profits.」

「In the product planning business, investment in new product development and the development of new customers continued to be accelerated.」

「In the product planning business, investment in new product development and the development of new customers was accelerated. During the second-quarter consolidated cumulative period, orders were secured from new customers, and efforts were made to strengthen product proposals and sales activities for those customers.」

「In the product planning business, investment in new product development and the development of new customers was accelerated, continuing from the previous consolidated fiscal year.」

「In the product planning business, investment and business development aimed at expanding sales and profits were advanced through improving quality control methods at current production sites, reducing the defect rate, and inspecting potential new production sites.」

「In the product planning business, investment was accelerated to expand sales and profits through increasing existing transaction volumes, improving quality control methods at production sites, and reducing the defect rate.」

「The product planning business entered its second fiscal year since launch, and investment in improving quality control methods was accelerated while existing transaction volumes were increased to expand sales.」

「In the product planning business, orders from major customers progressed generally steadily, and production at the Vietnam and Cambodia factories operated smoothly, resulting in steady sales related to imports of furniture and miscellaneous goods. In addition, costs including administrative expenses increased as the company accelerated prototype production and the recruitment and training of appropriate personnel as investments to establish a foundation for increasing production capacity.」

「In the product planning business, investment in developing new products has been accelerated, in addition to the existing lineup, to expand sales. During the third-quarter consolidated cumulative period, sales of new products launched in March 2016 were strong, and revenue progressed steadily.」